After a hammer was sighted in late August (
here), CPO ralliedall the way from RM1900 to yesterday high of RM2400. The rally was prompted by the expected drop in FFB output due to the dry weather brought on by the
warm phase of the El Niño Southern Oscillation. In addition, CPO priced in MYR also received a big boost from the weakening of MYR vis-a-vis USD & other currencies.
Technical resistance for CPO plus technical support for MYR could cap the rise of CPO for the short-term after the huge rise. The RM2400 level should act as a strong resistance for now while immediate support levels are at RM2280 & RM2230.
Chart: CPO's daily chart as at Sep 30, 2015 (Source: ifs.marketcenter.com)
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